Overview of the Dashboard

This report analyzes customer churn trends and identifies key factors driving customer attrition. The objective is to enhance retention strategies and reduce revenue loss.

View Dashboard here

Data collection:

As a part of my virtual internship with PwC Switzerland, I was provided with a dataset to complete this project

Data Preparation and transformation:

• Data transformation was performed in Power Query, and the dataset was loaded into Microsoft Power BI Desktop for modeling.

• The dataset consists of 23 columns and 7,043 rows under the table name Customer Churn Dataset.

• Data Cleaning steps: few steps include

  • Standardizing response values in the certain columns.
  • Added a new column Loyalty

  loyalty check = SWITCH(TRUE(),
  'Churn Data'[tenure]<=12,"1 Year",
  'Churn Data'[tenure]<=24,"2 Years",
  'Churn Data'[tenure]<=36,"3 Years",
  'Churn Data'[tenure]<=48,"4 Years",
  'Churn Data'[tenure]<=60,"5 Years",
  'Churn Data'[tenure]<=72,"6 Years"
  )
  

  • Removed unnecessary rows and columns.
  • Ensured each column has the correct data type and ready for analysis.

Key Findings

1.Customer Overview

• Total Customers: 7,043

• Retention Rate: 73.46% (5,174 retained customers)

• Churn Rate: 26.54% (1,869 churned customers)

• Revenue Impact:

  • Total Revenue: $456.12K
  • Revenue Lost Due to Churn: $139.13K (30.50%)

  

2.Churn Insights

• Demographics & Behavior:
  • Senior Citizens (41.68%) have a higher churn rate.
  • Customers with No Dependents (31.28%) and No Partners (32.96%) are more likely to churn.
• Service & Contract Analysis:
  • Month-to-Month Contracts (42.71%) contribute to the highest churn.
  • Fiber Optic Internet Users (41.89%) churn more than DSL or other services.
  • Electronic Check Users (45.29%) have the highest churn.
  • Customers with No Tech Support (41.64%) are at higher risk.
• Billing & Charges Impact:

  • Paperless Billing Users (33.57%) show higher churn.

  • Customers with Total Charges above $85 experience a 13.21% higher churn rate.

  • First-Year Customers (47.44%) are most likely to churn.

    

3. Key Churn Drivers

1. Contract Type (42.71%) – Month-to-month plans lead to higher churn.

2. Internet Service (41.89%) – Fiber optic users have increased churn.

3. Payment Method (45.29%) – Electronic check users are at higher risk.

4. Loyalty Check (47.44%) – First-year customers have the highest churn rate.

5. Lack of Additional Services – Online backup, security, and streaming services impact churn.

   

Recommendations to Reduce Churn

Improve Retention Strategies:

• Offer longer-term contracts (discounted annual plans) to mitigate churn from month-to-month contracts.
• Provide exclusive perks or discounts for loyal customers.

Enhance Customer Engagement & Support:

• Encourage tech support enrollment for at-risk customers.
• Offer better service for Fiber Optic users to reduce dissatisfaction.

Optimize Pricing & Payment Options:

• Address high churn among electronic check users by incentivizing auto-pay or credit card payments.
• Monitor and adjust high total charges exceeding $85 to improve retention.

Targeted Retention Campaigns:

• Special loyalty programs for first-year customers.
• Promotions for customers without additional services to encourage adoption.

Conclusion

Reducing churn requires a multi-faceted approach focusing on contract optimization, service enhancement, pricing adjustments, and customer engagement. Implementing these strategies will help in minimizing revenue loss and improving overall customer satisfaction.